Cultural Policy Summary

Cultural Policy Summary Notes – Exam March 23rd

3 Spheres of society
1. Government
2. Market
3. Oikos (third sphere)

Cultural policy
Pro: Culture has a value for society, policy is necessary to steer, stimulate, foster,
correct (culture is part of market failure)
Con: Culture develops on its own, no policy necessary

Market failure
Private benefit is what people are willing to pay for the social benefit, but it’s not
enough to pay all of it, so part is subsidy.
Causes: - Public goods and services: non-rival and non-excludable
- Externalities: external social benefits (social), spill-overs (economic)

Why need for public policies?
 Welfare economics justifications of public intervention for culture
 Public goods
 Externalities
 Information asymmetry (experience goods: don’t know what to expect)
 Equity (vs. efficiency) (everyone needs to benefit from culture; equal
income/access)
 Merit good (Individual’s own interest..?)
 Baumol’s cost disease
 Non-use values (Existence, option, bequest)

Intentions of arts policy
- Excellence
- Access
- Innovation

Theoretical approaches
 (Cultural) economics
- specific approach
- welfare economics
- analysis of reasons
 Sociology (neo-institutionalist approach)
 History

Economic approach
 Dominance of public intervention
 Analysis of institutions responsible for cultural policies




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